2060000

1615200

444800

450503

-5703

2060000

1496800

563200

568903

-5703

862800
1115400
1368000

3451200
4461600
5472000

6039600
7807800
9576000

8628000
11154000
13680000

18118800
23423400
28728000

7277040
7277040
7277040

3638520
3638520
3638520

10915560
10915560
10915560

29034360
34338960
39643560

Variable costs = 56% of sales
Fixed costs = $187,100
Management’s net income goal = $82,092
Required sales to reach target income of $82,092 = (Total fixed cost + Target income)/(Contribution margin ratio)
Contribution margin ratio = (100%-variable cost percentage)
Contribution margin ratio = (100%-56%)
Contribution margin ratio = 54%
Required sales to reach target income of $82,092 = (187100+82092)/54%
Required sales to reach target income of $82,092 = $498,503.7
Solution 19-17
Manufacturing cost per unit (variable costing) = $7.73 + $2.52 + $5.92
Manufacturing cost per unit (variable costing) = $16.17 per unit
a)
Manufacturing cost per unit (variable costing) = Direct material + Direct labor + Variable manufacturing overhead
b) Variable costing income statement:-
POLK COMPANY
Income statement
For the year ended December 31, 2012
Variable costing
Sales
Less: Variable costs
Contribution margin
Less: Fixed costs
Operating profit
Amt.
d) Absorption costing income statement:-
Absorption costing
Less: Cost of goods sold
Gross margin
Less: Selling and admin expenses
Direct material
Direct labor
Variable overhead
Total Depreciation for 2012 based on expected annual sales of 1,212,840 = 6*1,212,840
Total Depreciation for 2012 based on expected annual sales of 1,212,840 = $7,277,040
Total supervision cost for 2012 based on expected annual sales of 1,212,840 = $3,638,520
Total supervision cost for 2012 based on expected annual sales of 1,212,840 = 3*1,212,840
Note:-
Depreciation
Supervision
Variable cost:-
Total variable costs (a)
Total Fixed costs (b)
Total costs (a+b)
Answer wrong according to book
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